In line with a rise in the Consumer Price Index, the Medicare Levy threshold will increase by $565 to $19,404 for singles, while couples will see their threshold jump to $32,743.

The increase in the threshold will be backdated to take effect from July 1 2011 and is expected to cost the government $85 million.

Families will also benefit from the increase, with the additional amount of threshold for each dependent child or student rising from $2,919 to $3,007.

Single low-income earners will be able to enjoy a second round of relief, with the threshold set to rise again to $20,542 in the coming 12 months as part of the Clean Energy Future Plan household assistance package.

The news came as the government also announced a $475 million investment in new and upgraded health facilities for regional Australia.

Hospitals and multi-purpose services in regional centres such as Broken Hill, Bundaberg, Hillston and Warracknabeal will be redeveloped, while the Royal Flying Doctor Service will also receive additional funding.

"We want Australians to have the health care they need, when and where they need it," health minister Tanya Plibersek said yesterday.